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RAKBANK inspires future generation to protect the UAE’s environmental landscape
08/06/2015
RAKBANK today hosted a workshop with leading conservationist and vet, Dr Anne-Lise Chaber and youth Emirati environmentalist Ameera Al Haranki, ahead of a Dubai British School conservation expedition to South Africa taking place this summer. The expedition team and 40 Year 10 GCSE geographers attended the RAKBANK workshop, promoting conservation awareness and sustainability both at home, in South Africa and worldwide. The two spokespeople were Dr Anne-Lise Chaber, from The Wildlife Organisation, who heads up the RAKBANK funded Wildlife Project, and environmental role model, Ameera Al Haranki, giving insights from her RAKBANK sponsored two week environmental expedition to the Antarctic earlier this year.
Financed by their own fundraising, four sixth form student, studying A-Levels, and a Geography teacher will be working with local communities and the South African Government to manage and conserve the country’s wildlife. The project will take place in one of the largest game reserves in Africa, the Kruger National Park, and Sodwana Bay, a narrow strip of sand dunes located on the east coast of South Africa.
Through this workshop RAKBANK aims to inspire not only the geographers participating in the expedition and their peer group but the next generation to get involved with environmental projects and preserve the UAE’s landscape.
RAKBANK Lifts Foreign Ownership Limit
07/06/2014
RAKBANK is pleased to announce that it received ministerial approval to lift its foreign ownership level to 40% following the decision to do so at the Extraordinary General Meeting held on 8th May 2014. The new limit has been adjusted by Abu Dhabi Securities Exchange (ADX) last Thursday 5 June.
Commenting on the limit increase, Peter England, RAKBANK’s CEO, said that the Bank had been running very close to the old 20% limit for some months now. Foreign interest has picked up very strongly, he explained, as a result of the UAE's inclusion in the MSCI Emerging markets index as well as the Bank’s active engagement with foreign investors in recent months.
“We most probably would have seen foreign trades being rejected in the near future had the limit not been increased,” said England. “Investors are very keen to hold RAKBANK stock due to its valuations considering that the Bank has one of the highest ROA, ROE, and Tier 1 Capital ratio of any bank in the region.”
About RAKBANK
RAKBANK, also known as the National Bank of Ras Al-Khaimah, is a leading retail and small to medium business bank in the UAE, serving over 700,000 customers. Founded in 1976, the Bank is one of the country’s oldest local financial institutions and today one of its fastest growing and most dynamic banks. According to The Banker's Top 100 Bank Rankings for 2013, RAKBANK is the 1st in the Arab World by Return on Assets and 5th in the Arab World by Return on Capital.
RAKBANK offers a wide range of personal and business banking services, as well as Islamic Banking solutions via RAKBANK AMAL, throughout its 34 branches, and its Telephone, Online, and Mobile banking channels.
RAKBANK Wins Best Mobile Banking Initiative and Best SME Bank in the Middle East for 2014
01/06/2015
RAKBANK was awarded the Best Mobile Banking Initiative and Best SME Bank in the Middle East for MobileCash, its cardless ATM withdrawal and RAKFinance, its small business lending offering.
Using MobileCash, customers can send and withdraw money from the ATM without the need for a debit card. By the end of 2014, monthly transactions grew by almost 200%, with the total value of withdrawals reaching upward of AED 30 million ($8.2m)
The Operating Profit of RAKFinance grew 22% in 2014 while its traditional Business Banking loan book more than doubled during the year.
Dubai, May xx 2015 — RAKBANK won the award for the Best Mobile Banking Initiative and Best SME Bank in the Middle East for the year 2014 at The Asian Banker’s 2nd Annual Middle East and Africa Awards Ceremony. The ceremony was held at the Ritz Carlton, DIFC, Dubai on May 27th 2015.
RAKBANK launched MobileCash in mid-2014, its cardless money withdrawal service. Using MobileCash, customers can send money to a beneficiary who can withdraw it from an ATM without the need for a debit card. Customers can simply log into their mobile banking application and select the MobileCash option for self or beneficiary followed by the amount they wish to send. The beneficiary can then withdraw cash from the nearest RAKBANK ATM using only the one-time pin that is generated and sent through SMS.
Keeping customer awareness and engagement at the forefront, the Bank ran an extensive advertising campaign, resulting in an exponential increase in the number of transactions month-on-month since the launch of the service. In the first few months of operations, monthly transactions grew by almost 200%, with the total value of withdrawals exceeding AED 30 million ($8.2m).
On the other hand, the SME segment’s operating profit grew 22% in 2014 on the back of strong growth in RAKFinance (the Bank’s collateral-free lending product) as well as significant growth in the Bank’s traditional Trade Finance and Working Capital lines. The SME business contributes 30% to the total revenue of the bank, offering customers collateral free business loans and innovative trade solutions. The bank introduced an asset based financing product in 2014, further increasing the bank market share in the SME space, while helping clients meet both long and short term financial need of their businesses.
Award-winning banks and vendors attended the gala event that recognised their efforts in bringing superior products and services to their customers. The Asian Banker’s Middle East and Africa Awards are acknowledged by the financial services industry as the highest possible accolade available to professionals and banks in the industry. Over 100 institutions from the Middle East and Africa were evaluated across 30 different countries. A stringent three-month evaluation process based on a balanced and transparent scorecard has been used to determine the winners.
RAKBANK Acquires 79.23% of RAK Insurance
United Arab Emirates, 28 May 2015: RAKBANK today announced the acquisition of 79.23% stake Ras Al Khaimah National Insurance Company P.S.C. (RAK Insurance) following the purchase of a total of 87,154,981 shares at AED 3.64 per share through a tender offer. The acquisition enables RAKBANK to become the largest shareholder in the insurance provider and is in line with the Bank’s strategy to become a broad-based financial services company.
H.E. Mohammad Omran Alshamsi, RAKBANK Chairman, commented: “The acquisition is consistent with the Bank’s key strategic objective of strengthening market share and I am confident that this acquisition will deliver long-term value to all stakeholders.”
Peter England, RAKBANK CEO, said: “RAK Insurance is a successful and well reputed insurance provider and we look forward to growing our collective businesses in a very close partnership and to jointly develop a range of insurance products over time. We see a tremendous opportunity for growth in the Bank’s business by diversifying into complementary industries such as insurance that enhance revenue and market share and ensure that customers enjoy a more wholesome experience.”
Founded in 1974, RAK Insurance is a successful insurance provider listed on the Abu Dhabi Securities Exchange (ADX) and has a full license to issue conventional general and life policies.
Andrew Smith, RAK Insurance CEO, said: “I am delighted that we have been able to partner with RAKBANK through a share acquisition. Developing the bancassurance channel, RAK Insurance will be able to further strengthen its client’s relations and help provide the bank with unique and innovative products and services. This is an exciting opportunity for both parties and I look forward to continued success.”
With a total capital ratio of 24.2% by end of March 31 2015, RAKBANK funded the entire acquisition through existing resources. Whilst RAK Insurance will become the Bank’s preferred insurance partner, RAKBANK will continue to bring to its customers a range of insurance products from other providers as per its current arrangements to ensure that customers have choice from a wide range of products to suit their needs. The Bank has 35 branches and over 200 ATMs throughout the UAE, as well as Telephone, Online, and Mobile banking solutions.
RAKBANK Launches RAKGoldInvest
19/05/2015
Gold is often perceived as an investment haven due to its enduring ability to retain its value and mitigate the impact of inflation. It is the world’s oldest international currency and has proved to be one of the leading asset classes of the 21st century. According to a study by Rhodes Precious Metals Consultancy commissioned by RAKBANK, gold has produced an average return of almost 13% per annum since 2001, easily outperforming US equities which grew at an annual average of just 6% over the same period. In the UAE, the size of Dubai’s physical gold market has grown from just under $5 billion in 2002 to over $55 billion in 2014, with the emirate acting as the logistical bridge connecting the world’s major physical gold markets.
To provide customers with the opportunity to diversify their investment portfolio, RAKBANK launched RAKGoldInvest, an investment tool that allows High Net Worth customers to invest in gold electronically whilst saving them the hassle of storing and moving the gold. Customers can buy, sell, or hold their investments 24/7 via an online trading platform on the Bank’s corporate website, and can convert their RAKGoldInvest holdings to physical gold bars at any time.
This is the second gold-themed product launched by RAKBANK in 2015. In January, RAKBANK partnered with Kalyan Jewellers to launch a co-branded Credit Card. The RAKBANK KALYAN JEWELLERS MasterCard Credit Card, which is accepted globally for purchases and cash withdrawals, offers ‘Goldback’ loyalty points that are earned at a rate of up to 7% and can be redeemed at any Kalyan Jewellers outlets in the UAE in the form of jewellery. To ensure customer convenience, the card also offers a 0% easy payment plan on diamond and gold jewellery purchases.
“RAKBANK recognizes the strong appeal of gold investments especially among Asian communities who still largely consider them to be the ultimate store of value even with the introduction of modern financial instruments and asset classes,” said Peter England, RAKBANK CEO. In fact, demand for gold was virtually exclusive to Asia before the Global Financial Crisis in 2008 but since then there’s been a significant move into gold worldwide as an alternative hard asset to traditional paper investments such as equities and bonds.*
Gold’s purchasing power grew by 10.72% in USD terms between 2001 and 2014 compared to a 2.27% increase in US Consumer Prices. The proof of gold’s enduring ability to retain its value and mitigate the impact of inflation is also highlighted by an increase of more than 43% in the yellow metal’s purchasing power since 2001 compared to that of crude oil.*
“With the launch of RAKGoldInvest and the Kalyan co-branded credit card, RAKBANK offers flexible, convenient, and simple gold-themed products that aim to diversify customers’ investment portfolio,” added England.
Existing RAKBANK customers can apply for RAKGoldInvest online through the Bank’s Online Banking platform while new bank customers are invited to visit one of the bank’s 35 branches in the UAE. To learn more about RAKGoldInvest, kindly get in touch with RAKBANK on 04 2130000.
RAKBANK Wins ‘Best Digital Bank in the Middle East’
12/05/2015
RAKBANK Announces AED 362.2 million Net Profit for the First Quarter of 2015
22/04/2015
RAKBANK today announced a net profit of AED 362.2 million for the three months ended 31 March 2015. Gross loans and advances grew by 15.8% year-on-year and stood at AED 26.7 billion by the end of the quarter.
The 8.3% increase in profit over same period last year reflects a year-on-year improvement in operating income and improved expense ratios. Total Operating Income for the three months ended March 2015 increased by 13.1% year-on-year to AED 932.3 million due to a rise in net interest income. Non-interest income was up by 7.2% to AED 198.8 million compared to the same period last year mainly due to an increase of 11.4% in fees and commission income.
During the first quarter the Bank continued to invest in its distribution network, product development, and electronic solutions. In addition to opening a new branch in Al Ras area and launching the KALYAN JEWELLERS co-branded MasterCard credit card, RAKBANK was recently recognized during the G-Summit 2015 as one of the very few banks in the world to provide authenticated web chat service to customers on its corporate website and its Online Banking platform. As a result of these investments and a rise in employment costs to support business growth, operating expenses increased by 4.8% year-on-year to AED 377.0 million by the end of the first three months of 2015. Nevertheless, Cost-to-Income ratio dropped to 40.4% as at 31 March 2015 from 43.6% as at 31 March 2014.
“Our first quarter financial results reflect stable earnings, healthy liquidity, and a strong capital base,” said Peter England, RAKBANK CEO. “The key contributing factor is growth in gross loans and advances, which were up by AED 863.9 million year-to-date as a result of strong signs of growth during the quarter across most business units especially RAKFinance, Auto Loans, and Business Banking. Traditional working capital and trade loans to the SME and Commercial Banking segment grew by around 130% year-on-year and our Trade Finance portfolio surpassed AED 2 billion.”
The total impairment charge for the three months increased by AED 62.7 million year-on-year to AED 193.1 million as the provision coverage ratio closed at 84.6%. “This rise is largely due to an increase in provisions in Personal and RAKFinance loans, the overall growth in our loan book, and the Bank’s commitment to a long-term sustainable performance as we continue to take further precautionary provisions on our restructured book. That being said, non-performing loans (NPL) and net credit loss (NCL) remain very reasonable given the fact that we are largely an unsecured lender,” explained England. As of 31 March 2015, NPL stood at 2.7% of the gross loan portfolio and the annualized NCL to average loans and advances closed at 2.98%.
Total assets grew by 2.5 billion year to date as a result of loans and advances and deposits with other banks. This includes the un-deployed funds from the Bank’s own Euro Medium Term Note (EMTN) which raised a further USD 300 million in February 2015 by re-opening the June 2019 bond under the Bank’s USD 1 billion EMTN programme. In addition to the ordinary growth in assets, the Bank received AED 3.7 billion in funds from a Business Banking customer on 31 March 2015, which was parked with other banks on an overnight basis. As a result, total assets stood at AED 41.0 billion by the end of the quarter.
Customer deposits were up by AED 1.5 billion year to date on the back of an increase in current and saving accounts as well as Islamic banking deposits, which grew by 11.5% to AED 2.9 billion. Taking into account the AED 3.7 billion funds received from a Business Banking customer on 31 March 2015, total deposits stood at AED 29.9 billion by the end of the quarter.
The Bank’s capital adequacy ratio as per Basel II requirement at the end of the quarter is 24.2% against a current minimum total capital ratio of 12% prescribed by the UAE Central Bank. At the end of the quarter, the regulatory liquid assets ratio (LAR) was 16.6% AED and lending to stable resources ratio (LSRR) was 75.1%. Total shareholder’s equity totaled AED 7.5 billion and includes three months profit for the year 2015 and undistributed dividend of AED 838.1 million for the year 2014.
RAKBANK Concludes Annual General Meeting
08/04/2015
Shareholders elect board members and approve 50 fils cash dividend for 2014
Ras Al Khaimah, UAE – 9 April 2015: RAKBANK successfully concluded its Annual General Meeting today at its headquarters in Ras Al Khaimah. During the AGM, shareholders approved the distribution of a cash dividend of 50 percent (50 fils per share) for the financial year ending 31 December 2014.
RAKBANK’s ordinary annual general meeting proceeded to elect the Board of Directors, which welcomed three new members this year. For the financial years 2015-2017, RAKBANK’s Board of Directors consists of:
- H.E. Mohammad Omran Alshamsi
- H.E. Engr. Sheikh Salem Bin Sultan Al Qasimi
- Mr. Ahmed Essa Al Naeem
- Mr. Hamad Abdulaziz Al Sagar
- Mr. Salem Ali Al Sharhan
- Mr. Yousuf Obaid Al Nuaimi
- Mr. Rajan Khetarpal
- Mr. Allan Griffiths
Following the election, the directors met and unanimously elected H.E. Mohammad Omran Alshamsi as the new RAKBANK Chairman. Commenting on his appointment, H.E. Mohammad Omran Alshamsi, former CEO and Chairman of Etisalat, said: “I am pleased to be named Chairman of one of the most dynamic UAE banks. I appreciate the trust and confidence placed in me by the shareholders and my fellow board members.”
From his side, RAKBANK’s CEO, Peter England, said: “I would like to take this opportunity to welcome H.E. Mohammad Omran Alshamsi as the new Chairman and my team and I look forward to his guidance and counsel as we embark on the next phase of the bank’s transformation and growth.
I would also to thank H.E. Sheikh Omar Bin Saqr Al Qasimi for his contribution to the Bank. H.E. Sheikh Omar Bin Saqr Al Qasimi was elected as the Bank’s Chairman in 2006 and has served in this role until today. Under his supervision, the Bank saw its net profit rise from AED 258.8 million in 2006 to AED 1,454.6 million by end of 2014, while assets quadrupled from AED 8.8 billion in 2006 to AED 34.8 billion at the end of last year.”
“In 2014, RAKBANK once again recorded solid top line performance as a result of growth in just about all of our key business lines,” added England. “I look forward to working with our new Board as the Bank continues to explore new opportunities for revenue growth across Retail and Business Banking, while taking advantage of new opportunities that aim to grow our presence in the UAE and increase market share.”
The AGM also approved the financial statements for the year ending December 31, 2014 and the appointment of PricewaterhouseCoopers as the Bank’s external auditors for the financial year 2015.
RAKBANK Sponsors Ras Al Khaimah Student to Participate in Antarctic Expedition
04/04/2015
Dubai, UAE: RAKBANK is pleased to announce that as part of its CSR programme for the year, the Bank sponsored Ameera Mohammed Al Haranki, a 22 year old national student from Ras Al Khaimah, to take part in the ‘2041 International Antarctic Expedition 2015’ (IAE 2015). The life-changing expedition consisted of a two-week journey in the island continent involving team-building exercises, talks on climate change and global warming. The delegation of young environmental leaders learned how they can prevent global warming in their respective regions and how they can better incorporate these strategies into their work environments and communities.
Ameera, currently studying IT security at HCT RAK commented: “I’m very interested in environmental conservation and spreading the awareness of how important it is to protect our planet earth. The expedition to Antarctica was an eye-opening experience in terms of shedding light on the repercussions of global warming. This experience will definitely go a long way in helping me pursue a career as an aspiring environmentalist.”
The expedition participants met at the foot of the Andes Mountains in Ushuaia, Argentina and journeyed by ship to the last wilderness on earth, the Antarctic. The 2041 expedition, founded by Robert Swan OBE, the first person in history to walk to both the North and South Poles, annually brings together a group of present and future leaders who want to take responsibility to build resilient communities and seek change for sustainability. They are taught lessons by global experts on today’s issues of climate change and energy use and how they affect us worldwide, along with life lessons on leadership, team building, and unique wildlife experiences.
Sponsoring this expedition is in line with RAKBANK’s commitment to help conserve the environment. The Bank also supports a wildlife research and conservation project in its home emirate of Ras Al Khaimah. Led by Wildlife Consultant Organization, the project consists of wildlife research and public education by a team of veterinarians, biologists, herpetologists and ornithologists, as well as volunteers and university students.
RAKBANK Celebrates 35th Branch Opening in the UAE
02/08/2015
New Bank Branch Opened in Al Ras, Dubai
Dubai, UAE - 08 March 2015: RAKBANK recently launched its 35th branch, located in Al Ras near Dubai’s Gold Souk Area. The branch was inaugurated by Peter England, RAKBANK’s CEO, and attended by various members of the senior management team including Ian Hodges, Head of Retail Banking and Emad Hittini, Head of Branches for Southern Emirates.
Peter England remarked that, “RAKBANK’s strategy to ensures that the Bank caters to customers across all the main locations in the UAE especially ones with heavy footfall. The opening of Al Ras branch is in line with the bank’s plan to launch five additional branches in 2015.”
Along with conventional banking products and services, the new branch also offers SME and Trade Finance solutions. With the addition of the Al Ras branch to its network, RAKBANK today serves its customers through a total of 35 branches and over 200 ATMs located across the UAE. For detailed location information when visiting the branches, customers are invited to use the ATM/branch locator found on www.rakbank.ae. Alternatively, customers can enjoy the Bank’s complementing electronic channels for a faster and more convenient banking experience through Online Banking, Mobile Banking, RAKBANK Direct, and Phone Banking.